FAW Group, one of the four state-owned car manufacturers in China, has announced an investment worth CNY3.74 billion (approx. RM2.17 billion) in Stellantis-backed “startup” new-energy vehicle manufacturer Leapmotor.
The two parties signed a domestic share subscription agreement on December 28, 2025, which will see Leapmotor issue nearly 75 million new shares to FAW’s subsidiary, FAW Equity Investment, or a 5% equity stake at CNY50.03 per share.
This investment is the latest development in the partnership between the two companies, which dates back to 2020. In March this year, the companies signed a Memorandum of Understanding on a strategic cooperation, under which both parties will jointly develop passenger vehicles.
Leapmotor and FAW will reveal a jointly developed car next year, CarNewsChina reports. Citing Chinese publication IT Home, it adds that approximately 50% of FAW’s investments will be destined for R&D purposes, focusing on the joint development of plug-in hybrids (PHEVs) and extended range electric vehicles (EREV).
READ MORE: Leapmotor has built their 1-millionth car — less than a year after number 500,000
As a result of the issuance of new shares, the stake owned by Leapmotor founder Zhu Jiangming and his partners, the single largest group of shareholders, will be diluted from 23.8% to 22.6%. Stellantis, who acquired a 20% stake in the company back in 2023 to become the company’s second-largest shareholder, will also see its equity stake drop from 20% to 19%.
Leapmotor has been consistently ranked as the best-performing NEV startup in China, having achieved 800,000 cumulative vehicles delivered earlier this year. In this year alone, the company has already delivered 536,100 units in the first 11 months of 2025, representing a year-on-year increase of 114%, and is on target to hit 600,000 units for the full year.
The Chinese marque is targeting one million units sold in 2026, as it accelerates towards four million units annually within the next 10 years.
Closer to home, Stellantis Malaysia recently launched the Leapmotor B10 EV crossover, with two variants on offer priced from RM107,800.
